The purpose of this paper is to consider the effects of parts starvation on process idleness using an inventory policy of the (s, S) type when there are supply delays. We concentrate our attention on the mutual effects of supply delay and the costs of a facility's idleness which occur when there are parts shortage. This allows a greater understanding of the relationships between an inventory policy and the effects (and value) of flexibility in production.
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Economics and Econometrics
- Management Science and Operations Research
- Industrial and Manufacturing Engineering